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SRC IDs 22% YOY Output Growth in Q3; Adds Second Completion Crew, Ups Capex

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   |    Wednesday,October 17,2018

SRC Energy Inc. has detailed its preliminary Q3 2018 operating results and recent well activity.

Production Summary

Production is up +22% YOY at 49.2 MBOEPD and up +3% from the prior quarter.

  Three Months Ended
  9/30/2018 6/30/2018 Sequential % Chg. 9/30/2017
Average Daily Volumes      
Total Production (BOE) 49,165 47,646 3% 40,378
Liquids % 65% 65%   67%
Product Price Received        
Crude Oil ($/Bbl)* $63.48 $61.22 4% $42.37
Natural Gas Liquids ($/Bbl) $19.93 $17.65 13% $17.32
Natural Gas ($/Mcf) $1.79 $1.64 9% $2.35
Differentials        
NYMEX WTI* $(6.27) $(6.81) 8% $(5.81)
NYMEX Henry Hub $(1.11) $(1.16) 4% $(0.64)
Unit Costs        
Lease Operating Expense ($/BOE) $2.29 $2.68 -15% $1.17
* Includes transportation and gathering expense

Operations Update - Second Completion Crew Added

In anticipation of the Mewbourn 3 plant opening, SRC added a second completion crew and will maintain the two crews through year-end to complete certain pads ahead of the onset of winter and in anticipation of the O'Connor 2 plant expansion in the spring of 2019.

      Gross Well Count by Zone  
Pad Name Lateral Length Avg. WI Niobrara Codell Status
Ag 12 LL 86% 7 5 TTS Q2/Q3
Goetzel II 12 ML 93% 8 4 TTS Q3
Falken 12 LL, 6 SL 95% 11 7 TTS Q3
Boomerang 12 ML, 4 LL 84% 10 6 TTS Q4
Donn 13 LL 97% 8 5 TTS Q4
Harvesters 12 ML 88% 8 4 TTS Q4
Troudt I 12 LL 93% 9 3 Completing
Greeley Rothe 12 LL 67% 8 4 Completing
Troudt II 12 ML 100% 7 5 WOC
Lincoln 12 ML 68% 9 3 Drilling
McNear 12 LL 92% 8 4 Drilling
TTS - Turned to sales | WOC - Waiting on completion | DCNP - Drilled & completed but not producing | SL -Standard Lateral | ML - Mid-Reach Lateral | LL- Long Lateral

 

Guidance Update - $40MM Added to 2018 Capex

The table below details selected results for the three and nine months ended September 30, 2018 and current full-year guidance:

  3rd Qtr 2018
Actual
9 Months
2018 Actual
Original 2018
Guidance
Adjusted 2018
Guidance
         
Production (Boe/d) 49,165 47,416 48,000 52,000 50,000
Oil % 42% 45% 47% 45%
D&C Capex ($mil) $178 $408 $540 $580
Wells Drilled (Gross/net) 30/26 89/77 117/100 118/101
Wells Completed (Gross/net) 44/39 89/81 116/103 127/112
Wells TTS (Gross/net) 38/35 54/49   101/92

The Company has tightened its full year 2018 production guidance to approximately 50 Mboe/d as a result of gas processing developments and incremental increases reflecting the second closing of the GCII acquisition.

In addition, SRC has adjusted guidance for drilling and completion capital expenditures to approximately $580 million from prior guidance of $540 million. The increase reflects a combination of the additional wells that are now expected to be completed during the year due to efficiency gains, recent acreage trades and acquisitions that have led to higher working interests across our operating areas, as well as higher than expected non-operated activities.

 


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